JICA loans Rs.47bn to support Sri Lanka’s development agenda

Japanese Ambassador to Sri Lanka Kenichi Suguma exchanging the loan agreements with Treasury Deputy Secretary G.D.C. Ekanayake in the presence of JICA Vice Chairman Hidetoshi Irigaki, Special Advisor to Japanese Prime Minister Hiroto Izumi, National Policy and Economic Affairs State Minister Niroshan Perera and Foreign Resources Department Director General Priyantha Rathnayake

The Japan International Cooperation Agency (JICA) has taken steps to grant Sri Lanka Rs.46.6 billion (JPY 33 billion) to enable the government to maintain financial stability, continue the development agenda within the next five years and achieve its development goals.  

Approximately Rs.14.45 billion (JPY 10 billion), out of the full loan, was granted as a development policy development loan. 

This tranche, which is co-financed by the World Bank, aims to provide support to policy and institutional reforms of the government with a focus on reducing obstacles to private sector competitiveness, establishing more transparent and well-managed public institutions and in improving the fiscal sustainability of the government. 

The policy development loan is provided under concessional terms with an annual interest rate of 1.4 percent and with a 25-year repayment period.

The National Policies and Economic Affairs Ministry will be responsible for the overall implementation of this programme in cooperation with the related agencies including the Development Strategies and International Trade Ministry, Finance Ministry, Parliamentary Reforms and Mass Media Ministry, Auditor General’s Department, Board of Investment and Central Bank of Sri Lanka.

Meanwhile, the remaining Rs.32.1 billion (JPY 23 billion) will be made available to implement the second phase of the Anuradhapura North Water Supply Project.  

This project will be implemented to prevent the current fast-spreading chronic kidney disease in the province. The project will cover the Padaviya, Kebithigollewa, Horowpothana and Kahatagasdigiliya Divisional Secretariats.

The exchange of documents with regard to the loan took place yesterday at the Finance Ministry and the loan agreement with regard to the development policy loan project was entered into.